Connect update: demand connections reform

Demand connections reform

Demand connections reform aims to address three interrelated challenges, which are:

• the demand queue is large and growing and contains a significant number of projects that are likely non-viable
• the demand queue contains a significant number of well-progressed projects that are unable to connect quickly, due both to the time required for network or generation build, which is a key source of delay, and to the presence of nonviable projects acting as blockers
• there are no mechanisms to prioritise strategically important demand projects

Our objective is to reform the demand connections process so that viable projects can secure timely connections and strategic projects can be prioritised, delivering benefits for consumers and supporting economic growth while maintaining system security and operational integrity.

Connect pillar

The Connect pillar aims to develop new approaches and connection arrangements, to accelerate and increase the number of connections, and maintain a secure system.

We are progressing work under two workstreams:

• Connect Accelerate is considering reform to allow for self-build and ownership, and self-build and transfer of high voltage assets
• Connect Operate is considering contracting arrangements that may allow for increased capacity of demand to connect, requirements to minimise any negative impact of large demand on the grid and ways for large demand projects to have a positive impact on the grid

Initiatives under Connect Accelerate will be relevant to all large demand, as well as generation and storage. Connect Operate will consider the specific operational impact of data centres and other large demand and, where relevant, regulatory policy relating specifically to data centres may be considered.

This update

This update includes detail on how we are going to enable greater self-build and ownership and self-build and transfer of high voltage assets, including our plans to consult on these measures in the autumn. It also sets out details of the measures we are considering to maintain a secure and efficient electricity system as more large-scale demand customers, such as data centres, connect.

Get in touch

We welcome your feedback on:

• the scope of an independent transmission owner (iTO) licence, as it relates to each project archetype set out in this update
• the outcomes an iTO licence should seek to achieve and the risks it should mitigate
• how we can best achieve the right outcomes, and mitigate relevant risks in the conditions and regulatory design of an iTO licence
• what code changes or changes to other documents are needed to deliver what “good” looks like for self-build and transfer
• the opportunity for measures proposed under Connect Operate to support data centre development: where a proposed measure would present an investment risk, we welcome feedback on what would be required to mitigate that risk, in a manner that recognises the problem we are aiming to solve

Send us feedback by emailing connections@ofgem.gov.uk.